Abstract
This report provides the reader with statistics and insights about the pizza restaurant category that can help a market player do the following: stave off competition from other foodservice segments; retain core customers, increase frequency of use, attract new customers; make product development decisions; and create meaningful marketing messages and dynamic promotional campaigns.
The industry faces an uncertain future. In addition to slowing sales, national chains face rising fuel and cheese prices, increased competition, and a slow response to public health concerns.
Specific issues and questions addressed in the report include:
- Which pizza chains are growing and why?
- How have cheese prices affected sales?
- Which chains carries momentum in terms of unit growth or sales per unit?
- How well are pizza operators positioned to face an economic downturn?
- How can the segment connect to the Hispanic consumer?
- How can pizza marketers respond to growing debate on healthy foods?
- How can chains learn from experimentation-minded independents?
This report is the result of synthesizing multiple resources including sales data, consumer data gleaned from an exclusive Mintel study, a sampling of recent television spots from the biggest chains and trend sales data representative of the top 16 chains and supporting independents.
This report examines commercial dining at pizza restaurants in the U.S., including full-service, quick-service, and delivery/carryout chain restaurants. Tabulated market size estimates include the top 16 chains by 2006 sales (although the report addresses the wider pizza restaurant market throughout the report). The report excludes foodservice, institutional and frozen/RTE sales of pizza through supermarkets and other retail channels. Unless specified otherwise, all sales figures are for system-wide sales (all food sales from all outlets, whether these are franchised or company outlets, and excluding all other revenues that are not from foodservice).
Table of Contents
- Scope and Themes
- What you need to know
- Definition
- Resources used for consumer sections
- Abbreviations and terms
- Abbreviations
- Terms
- Executive Summary
- In a nutshell: by the numbers
- The pizza players
- Large chain growth slows to crawl
- Which one' s your favorite?
- Independents chains flex muscle
- Key strength: value
- Key strength: families
- Key strength: convenience
- Trends driving delivery/carryout
- Desire for convenience drives decision to have it delivered
- $60,000 question: indulgent or nutritious?
- Like it or not--get ready for healthy pizza
- Friendly advice: adapt to and leverage online ordering
- Warning to the wise: QSR and fast casual encroach with pizza on menu
- Warning to the wise: cheese prices may tip the applecart
- Market Drivers
- Key points
- Pizza: Convenient and social
- Figure 1: Pizza restaurant delivery, pickup, and dine-in: purchases, purchase frequency, and percent of purchase in past month, August 2007
- High gas prices affect roadside restaurants
- Economic indicators cause for concern
- Figure 2: Key economic indicators (GDP, PDI, savings, unemployment), 2001-06
- Demographics
- Figure 3: Population by age, 2007-12
- Figure 4: Household profile, January-September 2005
- Figure 5: Population by race and Hispanic origin, 2007-12
- Indulgent versus nutritious offerings
- Figure 6: Health attitudes toward pizza, by gender, August 2007
- Online ordering on the rise
- Figure 9: U.S. broadband household projections, 2000-10
- Cheese prices skyrocket
- Market Size and Trends
- Key points
- Market size
- Figure 7: Total U.S. systemwide sales of leading pizza chains, at current and constant prices, 2004-06
- Figure 8: Usage of pizza restaurants by share of U.S. population, by age, 2007
- Market trends
- Respondents conflicted over the desire for indulgent vs. healthier pizza
- Trans fat challenge
- Safe Food Act
- Organic and all-natural increase traction
- Online ordering
- Delivery fees
- Delivery organizes
- Market Segmentation
- Key points
- Overview
- Figure 9: Where food was eaten, by restaurant type, April 2007
- Delivery/carryout
- Figure 10: Pizza restaurant delivery, pickup, and dine-in: purchases, purchase frequency, and percent of purchase in past month, August 2007
- Dining in
- Figure 11: Pizza restaurant delivery, pickup, and dine-in purchases in the past month, by HH income, August 2007
- Figure 12: Pizza restaurant delivery, pickup, and dine-in purchase frequency in the past month, by HH income, August 2007
- Figure 13: Pizza restaurant delivery, pickup, and dine-in purchases and frequency of purchase in the past month, children under 18 in HH, August 2007
- Figure 14: Chuck E. Cheese
- Supply Structure
- Key points
- Pizza restaurant chains
- Figure 15: U.S. systemwide sales of leading pizza restaurant chains, 2004 and 2006
- Unit growth increases sales
- Figure 16: U.S. systemwide units and sales per unit of leading pizza restaurant chains, 2004 and 2006
- Pizza Hut
- Domino' s
- Papa John' s
- Little Caesar' s
- Independents chains flex muscle
- Figure 17: Favorite pizza restaurant, by HH income, August 2007
- Figure 18: Favorite pizza restaurant, by children under 18 in HH, August 2007
- Advertising and Promotion
- Overview
- Domino' s Pizza
- Figure 19: Domino' s Pizza, oven baked brownie squares
- Figure 20: Domino' s Pizza, Cheesy Garlic Bread Pizza
- Figure 21: Domino' s Pizza, Philly Cheese Steak and Brooklyn Style Pizzas
- Pizza Hut
- Figure 22: Pizza Hut, Sicilian Lasagna Pizza
- Figure 23: Pizza Hut, Cheesy Bites Pizza
- Figure 24: Pizza Hut, The P' zone
- Papa John' s
- Figure 25: Papa John' s, Italian Trio Meats Pizza
- Figure 26: Papa John' s, Sausage Sensation Pizza
- The Consumer: Usage of Pizza Restaurants
- Summary
- Purchase incidence at pizza restaurants
- Pickup, delivery, and dine-in
- Usage of leading pizza restaurant chains
- Favorite pizza restaurant
- Purchase incidence at pizza restaurants
- Figure 27: Purchase incidence of drinks/food from a pizza restaurant, by key demographics, 2007
- Delivery, pickup, and dining in at pizza restaurants
- Figure 28: Pizza restaurant delivery, pickup, and dine-in purchases and frequency of purchase in the past month, August 2007
- Figure 29: Pizza restaurant delivery, pickup, and dine-in purchases and frequency of purchase in the past month, by gender, August 2007
- Figure 30: Pizza restaurant delivery, pickup, and dine-in purchases in the past month, by HH income, August 2007
- Figure 31: Pizza restaurant delivery, pickup, and dine-in purchases and frequency of purchase in the past month, children under 18 in HH, August 2007
- Usage of leading pizza restaurant chains
- Figure 32: Adult usage of leading pizza restaurants, by race/ethnicity, January-October 2006
- Figure 33: Teen usage of leading pizza restaurants, by race/ethnicity, January-October 2006
- Favorite pizza restaurant
- Figure 34: Favorite pizza restaurant, by gender, August 2007
- Figure 35: Favorite pizza restaurant, by HH income, August 2007
- Figure 36: Favorite pizza restaurant, by race/ethnicity, August 2007
- Figure 37: Favorite pizza restaurant, by children under 18 in HH, August 2007
- The Consumer: Attitudes About Pizza
- Summary
- Health attitudes toward pizza
- Value and independent pizza restaurant preferences
- Attitudes related to pizza delivery
- Parents and pizza
- Health attitudes toward pizza
- Figure 38: Health attitudes toward pizza, by gender, August 2007
- Figure 39: Health attitudes toward pizza, by age, August 2007
- Figure 40: Health attitudes toward pizza, by gender, August 2007
- Value and independent pizza restaurant preferences
- Figure 41: Value and independent pizza restaurant preferences, by gender, August 2007
- Figure 42: Value and independent pizza restaurant preferences, by gender, August 2007
- Figure 43: Value and independent pizza restaurant preferences, by children under 18 in HH, August 2007
- Attitudes related to pizza delivery
- Figure 44: Attitudes related to pizza delivery, by gender, August 2007
- Parents and pizza
- Factors related to parents selecting a pizza restaurant
- Figure 45: Factors related to selecting a pizza restaurant, by HH income, August 2007
- Kids' influence on decision to go to pizza restaurant
- Figure 46: Kids' influence on decision to go to pizza restaurant, by gender, August 2007
- Reasons for dining out at a pizza restaurant
- Figure 47: Reasons for dining out at a pizza restaurant, by gender, August 2007
- Figure 48: Reasons for dining out at a pizza restaurant, by HH income, August 2007
- Future and Forecast
- Future trends
- Healthy pizza is here to stay
- Small chains and independents to enjoy more market share
- QSR and fast casual encroach with pizza offerings
- Market forecast
- Leading pizza chains
- Figure 49: Forecast of total U.S. systemwide sales of leading pizza chains, at current and constant prices, 2006-08
- Forecast factors
- Appendix: Trade Associations
